Fdj United · EURONEXT:FDJU
Fdj United — Kindred Group — Q2 2024 Earnings Presentation
24 slides from Fdj United's earnings presentation, Jul 24, 2024
Slide 1: Interim Report Q2 2024
Nils Andén, CEO Patrick Kortman, Interim CFO Interim Report Q2 2024 | 24 JULY 2024 Classified as public
Slide 2: Outline
2024/ 2 Outline 01 HIGHLIGHTS 02 BUSINESS OVERVIEW – Q2 PERFORMANCE – PRODUCT SEGMENT UPDATE – REGIONAL UPDATE – NORTH AMERICA – RELAX – SUSTAINABILITY 03 FINANCIALS 04 SUMMARY Classified as public
Slide 3: Highlights
2024/ 3 Highlights Strong Sportsbook Particularly strong Strong activity Focus on strategic performance drives development in locally throughout the quarter execution and cost growth across most regulated markets with with significant Euro management is paying core markets with Gross winnings 2024 c
Slide 4: Solid performance sets steady path to annual guidance
2024/ 4 Solid performance sets steady path to annual guidance ENCOURAGING GROWTH ACROSS THE MARKET PORTFOLIO WITH LOCALLY REGULATED SHARE OF GWR AT 84% Locally Underlying Free Active Net Revenue regulated EBITDA cash flow customers cash share of GWR GBP 327.6m GBP 267.1m GBP 73.6m GBP 41.6m 1,749,61
Slide 5: Business overview
2024/ 5 Business overview Classified as public
Slide 6: Proof of scalability as locally regulated markets outgrow and profitability improves
2024/ 6 Proof of scalability as locally regulated markets outgrow and profitability improves Locally regulated GWR at an all-time high Profitability continues to improve, demonstrating of GBP 267.1m Locally the strength of our business model regulated share GBPm GBPm 300 84% 90% 90% 360 % of locally
Slide 7: Strong activity across our customer base
2024/ 7 Strong activity across our customer base Active customers (thousands) ARPU (GBP) Solid growth in active 2,000 800 customers of +12% 1,800 720 compared to Q2 2023 1,600 640 1,400 560 Supported by the Euro 1,200 480 2024, sports betting actives 1,000 400 grew by 21% and casino ARPU 800 320 act
Slide 8: Product segment update
2024/ 8 Poker, 3% Other, 1% Product segment update Sports Q2 2024, YEAR-ON-YEAR GWR 43% betting by product Sports betting Casino 53% • GWR saw an increase of 18%, supported by a busy sports & games calendar and the Euros tournament bringing good activity and favourable results • Kindred Sportsbook P
Slide 9: Euro 2024 – highest tournament revenue ever
2024/ 9 Euro 2024 – highest tournament revenue ever Highlights Tournament statistics 2024 • 16 per cent increase in revenue vs World Cup 2022 June 123.6 • Sports betting margin before free bets at 19.7%, driven Turnover (GBPm) July 66.0 by high margin product focus Total 183.6 • Bet Builder & tradit
Slide 10: Strong sports betting margin throughout the quarter
2024/ 10 Strong sports betting margin throughout the quarter SPORTS BETTING MARGIN AFTER FREE BETS AT 12.1% IN Q2 24, UNDERPINNED BY A FAVOURABLE EURO 2024 Sports betting margin after free bets in an upward • Sports betting margin of 12.1% after free bets trajectory, pushing the long-term average hi
Slide 11: Regional update
2024/ 11 Other, 2% CES Regional update 10% Western 65% Europe Q2 2024, YEAR-ON-YEAR GWR 23% by region Western Europe Nordics • GWR increased by 16%, driven by continued strong performance in the Netherlands alongside return to growth in France and Belgium • The Netherlands grew by 17% in local curre
Slide 12: North American exit operationally complete
2024/ 12 North American exit North America operations Q2 2024, GBPm operationally complete GWR 2.2 • In Q2 24, GWR for the North American market amounted CoS -2.3 GBP 2.2m, representing a decline of 73 per cent in Marketing -0.1 constant currency, aligned with internal expectations given the closure
Slide 13: Relax Gaming continues to show solid growth
2024/ 13 Relax Gaming continues Relax total revenue development* to show solid growth • Revenue growth of 10 per cent to GBP 13.4m. B2B GBPm 15.0 revenue amounted to GBP 10.4m (+16% y-o-y) 13.0 13.4 12.3 12.2 12.2 • Growth continues to be driven by broader distribution 11.3 of Relax Gaming’s own con
Slide 14: Firm focus on our Journey towards Zero
2024/ 14 Firm focus on our Journey towards Zero OUR DIALOGUE WITH STAKEHOLDERS AND REGULATORS CONTINUES Social Low Risk Medium Risk High Risk 100% 4.7% Data from Q2 2024: 4.4% Share of GWR from high-risk players: 3.0% 4.3% 4.3% 80% Improvement effect after interventions: 86.8% 4.0% 3.8% 60% 3.9% 3.9
Slide 15: Financials
2024/ 15 Financials Classified as public
Slide 16: Solid revenue growth driven by locally regulated markets
2024/ 16 Solid revenue growth driven by locally regulated markets GWR IN LOCALLY REGULATED MARKETS EXCL. NORTH AMERICA +12% Y -O-Y IN Q2 2024 Revenue split Revenue (B2C & B2B) LTM GBPm 1,259.6 B2B: 1,210.5 Relax Gaming 1,130.2 244.9 1,068.7 3% 312.9 907.6 912.8 364.7 305.5 + 7% 298.4 Q2 2024 751.4 2
Slide 17: Demonstration of disciplined approach to cost
2024/ 17 Demonstration of disciplined approach to cost Expenses as % of revenue M&A impacts historical comparisons FY FY Q2 Q2 2022 2023 2023 2024 25.2% 21.3%20.3% 18.5% 15.9% 14.5%14.1% 12.9% 13.2% 13.6% 13.6% 11.5% 8.1% 7.5% 7.4% 6.6% 4.5% 4.6% 4.9% 4.1% Cost of Sales Marketing costs Salaries Othe
Slide 18: Significant profitability increase highlights scalability of business model
2024/ 18 Significant profitability increase highlights scalability of business model UNDERLYING EBITDA REACHED GBP 73.6M, CORRESPONDING TO A MARGIN O F 23% EXCL. NORTH AMERICA Underlying EBITDA Underlying EBITDA* split, LTM (GBPm) 332.1 27.6 Relax Gaming 288.2 10% 84.8 +32% Q2 2024 204.9 118.2 204.5
Slide 19: Q2 2024 P&L FX impact vs Q2 2023
2024/ 19 Q2 2024 P&L FX impact vs Q2 2023 Avg. rate Q2 2023 Q2 2024 Movement Weighted average movement of AUD 1.874 1.915 -2.2% FX rates had a negative impact on DKK 8.567 8.745 -2.1% GWR slightly below 2 per cent EUR 1.150 1.172 -1.9% NOK 13.407 13.568 -1.2% SEK 13.186 13.489 -2.3% USD 1.252 1.262
Slide 20: Solid start to Q3 amidst summer of sport
2024/ 20 Solid start to Q3 amidst summer of sport TRADING UPDATE FOR THE FIRST 21 DAYS OF Q3 2024 The average daily GWR (B2C only) The daily average GWR (GBPm) for the Group up to and including 21 July 2024 was: 92 92 90 91 92 92 91 91 21 # of days • GBP 3.28m, 10% (11% in constant currency) 3.21 3.
Slide 21: Solid performance sets steady path towards annual guidance
2024/ 21 Solid performance sets steady path towards annual guidance Solid revenue growth and strong locally Revenue growth of +7% as all product segments show growth and Gross regulated markets performance winnings revenue in locally regulated markets reaches an all-time high Euro 2024 16% increase
Slide 22: Q&A
2024/ 22 Q&A Classified as public
Slide 23: Contact Calendar
2024/ 23 Contact Calendar Investor Relations 25 October 2024 ir@kindredgroup.com Q3 2024 will be published at 7.30 CEST 12 February 2025 Q4 2024 will be published at 7.30 CET Classified as public
Slide 24: Thank you
Kk kindred THANK YOU